In a tender for the sale of surface rights for 5 plots with a total area of 50,000 sq.m. Lamda Development is moving forward, as revealed by Odysseas Athanasiou, the company’s managing director, during yesterday’s conference call with analysts on the occasion of the announcement of the 2023 financial results.
Demand, according to the CEO, has far outstripped supply with prices hovering at 2,000 euros per sq.m., and even higher, with the goal of raising 100 million euros.
The results of the tender for the plots, which are located near Vouliagmenis Avenue where the The Ellinikon Mall (formerly Vouliagmenis Mall), will be announced in the next two months, while the availability of more plots for development is not excluded.
As the head clarified, answering a related question, the construction of the specific areas corresponds to 50,000 sq.m. and intended for residential use.
Because it is proceeding with the disposal of the plots
“We are master developers and we develop a very large area, but we also proceed with joint ventures and bring in new investors. With the aim of speeding up the implementation of the masterplan and enhancing liquidity, we decided to make the plots available for sale. It is a strategy chosen from the beginning. It gives a good message about the value we have already built in Elliniko”, noted Mr. Athanasiou, explaining the reasons why the listed company is proceeding with the transaction in question.
15-20% price increase in housing
Regarding the sales of residential projects and covering the increased construction costs, Mr. Athanasiou stated that house prices are now 15-20% higher than 10 months ago, while he stated that profit margins have improved.
“Over the coming period, the marketing of the homes in the Western markets begins and there is room for further growth, as the company’s target audience finds the current prices reasonable, if not low,” he commented.
In terms of construction progress, by the end of summer at least 10 condos will have reached the first floor, he said, while at the same time, the construction of Riviera Tower, the tallest green residential skyscraper in the Mediterranean, is progressing rapidly.
“In August, the tower will have reached 17 meters”, according to the words of Mr. Athanasios, noting that the first floors are already visible from Posidonos Avenue.
The 200-meter-high, 50-story Riviera Tower has been designed by the internationally renowned architectural firm Foster+Partners and built by the consortium Bouygues Bâtiment International and Intrakat.
It should be noted that by the end of March 2024, 641 million euros had been collected from real estate sales, of which 537 million euros from residential developments and 104 million euros from the disposal of plots, with the Hellinikon project achieving within 2.5 years from the signing of the transfer of the area to Lamda to show operating profitability (EBITDA) before valuations and adjustments of 65 million euros against a loss of 67 million euros.
By Christmas 2026, 1,500 apartments will have been built, the head of the company claimed in an interview with Bloomberg, noting that the first phase of Hellinikon will be completed in 2026-27.
In total, the listed company expects revenues of the order of 1.121 billion euros from the beachfront residences, while from the residential developments of the Little Athens project revenues of more than half a billion euros, until the completion of the first phase of development.
Mr. Athanasiou emphasized that Elliniko will add 2.5 percentage points to Greece’s GDP, create 70,000 to 80,000 jobs and bring at least 1 million tourists within the next three years.
As he mentioned, real estate is experiencing explosive growth in the country, helped by, among other things, the rise in tourism and the general improvement of the Greek economy.
Doubling EBITDA and the IPO for Lamda Malls
The group’s EBITDA, which in 2023 amounted to 206 million euros, will double in 3-4 years, that is, when the two shopping centers (The Ellinikon Mall and Riviera Galleria) will operate, emphasized the head of the listed company.
Finally, Mr. Athanasiou also referred to the IPO of Lamda Malls, repeating that it will depend on the market conditions, so that the valuation of the shopping centers is representative. It is recalled that Lamda Malls has been “endowed” with the 4 existing shopping centers (The Mall Athens, Golden Hall, Mediterranean Cosmos and Designer Outlet) and the 2 that will be built in Elliniko (The Ellinikon Mall and Riviera Galleria).
Source: Ot.gr
#Lamda #Development #plots #Elliniko #sale
